PARTICULARS OF ORGANIZATION, FUNCTIONS AND DUTIES PARTICULARS OF ORGANIZATION a) Name of the Company : Rashtriya Ispat Nigam Limited b) Company Identification : U27109AP1982GOI003404 Number (CIN) c) Date of Incorporation : 18 th February 1982 d) Mode of Incorporation : Incorporated as a Government Company under the provisions of the Companies Act, 1956. e) Administrative Ministry : Ministry of Steel Govt. of India. f) Present Status : A Govt. Company within the meaning of Section - 617 of the Companies Act, 1956. g) Share Capital : i) Authorised Equity Share Capital : Rs.4,890 Crores Preference Share Capital : Rs.3,110 Crores ------------------- Total : Rs.8,000 Crores ------------------- ii) Subscribed, Issued Rs.7,827.32 Crores and paid up capital h) Present Share holding. : The entire Share Capital is held by President of India. i) Address of Registered Office : Rashtriya Ispat Nigam Limited Visakhapatnam Steel Plant Administrative Building Visakhapatnam – 530 031 Website: www.vizagsteel.com Visakhapatnam Steel Plant (VSP), the first coast based Steel Plant of India is located, 16 KM South West of city of Destiny i.e. Visakhapatnam. Bestowed with modern technologies, VSP has an installed capacity of 3 million Tonnes per annum of Liquid Steel and 2.656 million Tonnes of saleable steel. At VSP there is emphasis on total automation, seamless integration and efficient up gradation, which result in wide range of long and structural products to meet stringent demands of discerning customers within India and abroad. VSP products meet exacting International Quality Standards such as JIS, DIN, BIS, BS etc. VSP has become the first integrated Steel Plant in the country to be certified to all the three international standards for quality (ISO-9001), for Environment Management (ISO-14001) & for Occupational Health & Safety (OHSAS-18001). The certificate covers quality systems of all Operational, Maintenance and Service units besides Purchase systems, Training and Marketing functions spreading over 4 Regional Marketing Offices, 24 branch offices and stock yards located all over the country. VSP by successfully installing & operating efficiently Rs. 460 crores worth of Pollution Control and Environment Control Equipments and converting the barren landscape by planting more than 3 million plants has made the Steel Plant, Steel Township and surrounding areas into a heaven of
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PARTICULARS OF ORGANIZATION, FUNCTIONS AND DUTIES
PARTICULARS OF ORGANIZATION
a) Name of the Company : Rashtriya Ispat Nigam Limited b) Company Identification : U27109AP1982GOI003404 Number (CIN)
c) Date of Incorporation : 18th February 1982
d) Mode of Incorporation : Incorporated as a Government Company
under the provisions of the Companies Act, 1956.
e) Administrative Ministry : Ministry of Steel
Govt. of India.
f) Present Status : A Govt. Company within the meaning of Section - 617 of the Companies Act, 1956.
g) Share Capital : i) Authorised
Equity Share Capital : Rs.4,890 Crores Preference Share Capital : Rs.3,110 Crores ------------------- Total : Rs.8,000 Crores -------------------
ii) Subscribed, Issued Rs.7,827.32 Crores and paid up capital
h) Present Share holding. : The entire Share Capital is held by President of India. i) Address of Registered Office : Rashtriya Ispat Nigam Limited Visakhapatnam Steel Plant Administrative Building Visakhapatnam – 530 031 Website: www.vizagsteel.com
Visakhapatnam Steel Plant (VSP), the first coast based Steel Plant of India is located, 16 KM South
West of city of Destiny i.e. Visakhapatnam. Bestowed with modern technologies, VSP has an
installed capacity of 3 million Tonnes per annum of Liquid Steel and 2.656 million Tonnes of
saleable steel. At VSP there is emphasis on total automation, seamless integration and efficient up
gradation, which result in wide range of long and structural products to meet stringent demands of
discerning customers within India and abroad. VSP products meet exacting International Quality
Standards such as JIS, DIN, BIS, BS etc.
VSP has become the first integrated Steel Plant in the country to be certified to all the three
international standards for quality (ISO-9001), for Environment Management (ISO-14001) & for
Occupational Health & Safety (OHSAS-18001). The certificate covers quality systems of all
Operational, Maintenance and Service units besides Purchase systems, Training and Marketing
functions spreading over 4 Regional Marketing Offices, 24 branch offices and stock yards located all
over the country.
VSP by successfully installing & operating efficiently Rs. 460 crores worth of Pollution Control and
Environment Control Equipments and converting the barren landscape by planting more than 3
million plants has made the Steel Plant, Steel Township and surrounding areas into a heaven of
lush greenery. This has made Steel Township a greener, cleaner and cooler place, which can boast
of 3 to 4° C lesser temperature even in the peak summer compared to Visakhapatnam City.
VSP exports Quality Pig Iron & Steel products' to Sri Lanka, Myanmar, Nepal, Middle East, USA,
China and South East Asia. RINL-VSP was awarded "Star Trading House" status during 1997-2000.
Having established a fairly dependable export market, VSP plans to make a continuous presence in
the export market.
Having a total manpower of about 16,600 VSP has envisaged a labour productivity of 265 Tonnes
per man year of Liquid Steel.
BACKGROUND
With a view to give impetus to Industrial growth and to meet the aspirations of the people from
Andhra Pradesh, Government of India decided to establish Integrated Steel Plant in Public Sector
at Visakhapatnam (AP). The announcement to this effect was made in the Parliament on 17th April'
1970 by the then Prime Minister of India late Smt. Indira Gandhi.
A site was selected near Balacheruvu creak near Visakhapatnam city by a Committee set up for the
purpose, keeping in view the topographical features, greater availability of land and proximity to a
future port. The foundation stone for the plant was laid by Smt. Gandhi on 20.01.1971.
Seeds were thus sown for the construction of a modern & sophisticated Steel Plant having annual
capacity of 3.4 Million Tonnes of hot metal. An agreement was signed between Governments of
India and the erstwhile USSR on June 12th, 1979 for setting up of an Integrated Steel Plant to
produce structural & long products on the basis of detailed Project report prepared by M/s M.N.
Dastur & Company. A Comprehensive revised DPR jointly prepared by Soviets & M/s Dastur &
Company was submitted in Nov' 1980 to Govt. of India.
The construction of the Plant started on 1st February 1982. Government of India on 18th February
1982 formed a new Company called Rashtriya Ispat Nigam Ltd. (RINL) and transferred the
responsibility of constructing, commissioning & operating the Plant at Visakhapatnam from Steel
Authority of India Ltd. to RINL.
Due to poor resource availability, the construction could not keep pace with the plans which led to
appreciable revision of the plant cost. In view of the critical fund situation and need to check
further increase in the plant costs, a rationalized concept was approved which was to cost Rs. 6849
crores based on 4th Quarter of 1988.
The rationalized concept was based on obtaining the maximum output from the equipments
already installed, planned / ordered for procurement and achieving higher levels of operational
efficiency and labour productivity. Thus the plant capacity was limited to 3.0 Million tonnes of
Liquid Steel per annum. In the process, one of the Steel Melt Shops and one of the mills were
curtailed.
The availability of resources were continued to be lower than what was planned and this further
delayed the completion of the construction of the plant. Finally all the units were constructed and
commissioned by July' 92 at a cost of Rs. 8529 crores. The plant was dedicated to nation by the
then prime Minister of India Late Sri P. V. Narasimha Rao on 1st August, 1992.
Since Commissioning VSP has already crossed many milestones in the fields of production,
productivity & exports. Coke rate of the order of 509 Kg/Ton of Hot metal, average convertor life of
2864 heats an average of 23.6 heats per sequence in continuous Bloom Caster. Specific energy
consumption of 6.07 G Kal / ton of liquid steel, a specific refractory consumption of 8.94 kg and a
labour productivity of 265 Ton / man year are some of the peaks achieved (during the year 2004-
05) in pursuit of excellence.
VSP Technology: State-of-the-Art
� 7 meter tall Coke Oven Batteries with coke dry quenching. Biggest Blast Furnaces in the
Country
� Bell - less top charging system in Blast Furnace
� 100% slag granulation at the BF Cast House
� Suppressed combustion - LD gas recovery system
� 100% continuous casting of liquid steel.
� "Tempcore" and "Stelmor" cooling process in LMMM & WRM respectively
• Security related jobs: Maintenance of watch towers and Flood light towers inside the plant
area.
Thermal Power Plant
The average power demand of all units of VSP when operating at full capacity will be around 230
MW. The captive Generation capacity of 286.5 MW is sufficient to meet all the plant needs in normal
operation time. In case of partial outage of Captive Generation Capacity due to brake down/
shutdown/ or other reasons, the short fall of power is availed from State Grid. The Captive
Generation capacity comprises of
� TPP : 247.5 MW (3 X 60 MW + 1 X 67.5 MW)
� Back Pressure Turbines (C&CCD) : 2 X 7.5 MW
� Gas Expansion Turbines (BF) : 2 x 12 MW
Power plant also meets the Air Blast requirement of Blast Furnaces through 3 Turbo Blowers each
of 6067 NM3/Min capacity.
In addition to the above, Power Plant also supply process steam, DM Water, Chilled Water, Soft
Water to various units of VSP.
Traffic Department
VSP has a well planned rail network with Yards / Stations, Locos and Wagons which are
maintained by Traffic department. For the convenience of Operational activities, the rail network is
divided into six yards / stations and each yard has specified functions attached to it.
VSP has the distinction of having peripheral yard concept to improve the turn – round time of
wagons and to avoid duplicating of the rail facilities by Railways and VSP. All the Raw-material
rakes are delivered by Railways directly at Pre-tippler lines.
The main functions of Traffic department are to carry out in-plant rail movements like handing over
of empties to Railways after tippling, transportation of Hot metal from BFs to SMS / PCMs, taking
over of empty rakes from Railways and distribution to various loading points and after loading of
the finished products and weighment handing over of load rakes to Railways.
Technical Improvement Cell
TIC functions as nodal agency for coordinating and monitoring the various activities as envisaged in company procedure for processing and implementing of AMR schemes.
TQM - ISO Cell
• Ensuring the implementation and maintenance of Quality Management System
requirements for ISO 9001 : 2008.
• Liaisoning with certifying agency for conducting audits for Quality Management System,
Environment Management System, Occupational Health & Safety Management System and
Energy Management System.
• Conducting Internal Audits for Quality Management System, Environment Management
System, Occupational Health & Safety Management System
Utilities Department
Utilities dept. Consists of
1. Air Separation Plant, designed to produce and meet the consumer requirements of gaseous
oxygen, Nitrogen and Argon through pipe lines and through gas cylinders.
2. Compressor Houses – 1 & 2, designed to produce and meet the consumer requirements of Plant
air and Industrial grade dry air.
3. Chilled water plants – 3 & 4, designed to produce chilled water for meeting the consumer air
conditioning requirements.
4. LPG is being procured and distributed through pipe lines for CCD & Engineering Shops and for
maintenance agencies through cylinders. DA gas is being procured and distributed for Billet
cutting at MMSM & for critical maintenance agencies through cylinders.
Works Contracts Department
� Processing for and obtaining administrative approval on receipt of contractual proposal
from indenting departments, tendering and awarding of work.
� Convening tender Committee meetings and preparing recommendations for awarding work.
� Preparing COM / Board Note for decisions at those forum.
� Participating in Claims and Arbitration proceedings and legal cases pertaining to contracts.
� Registration of agencies under various categories & classes of works regularly.
Water Management Department
Water Management Department basically caters water needs throughout the plant for various
processes of making Steel and drinking water inside the plant and Township. It consists of 30
• Receipt of Raw water from State Government, Treatment and distribution of Makeup
water and drinking water in & Township.
• Operation and Maintenance of Various Recirculating Pump houses, Cooling towers,
Treatment plants, pipe line tunnels etc.
• Maintenance of underground Makeup and Fire & Drinking water network.
• Operation and Maintenance of Effluent Treatment Plant & Sewage treatment plants and
pump houses.
• Recovery of township sewage water through Ultra Filtration process and reuse in plant
as make water.
Budget plan and control
� Identification of Budget requirement under various heads.
� Control of the Budget and Spares, Consumables & Raw Materials Inventory.
Systems and Procedures
� Streamlining the contract management system to ensure consistency of approach and
adoption of sound principles of contract management.
� Monitoring pollution control activities of the Plant and interaction with the State and
Central Pollution Control Board.
Directorate of Personnel
Personnel Department (Corporate Personnel, Central Employee Relations and Plant
Personnel)
� Manpower Planning
� Employees induction
� Service matters, policy & rules
� Industrial relations
� Employees welfare
� Corporate Social Responsibility (CSR)
� Replies to parliamentary questions
� Official Language implementation
Legal Affairs (LA)
� Legal Affairs deals with all legal matters including arbitration, coordination with Standing
Councils, Legal Advices etc.
Management Services (MS)
� Quality Circle
� Suggestion Scheme
� Incentive Scheme
� Reward Scheme
� Procedural Orders etc
Training & HRD
� Leadership Training
� Training on Motivation and Attitude
� Team Building
� Skill Training
� Induction and Orientation
� Plant Practice Lectures
� Basic Engineering Lectures
� Plant Specialized Training
� Management Development
� On the Job Training
� Multi Skilling / SUPW and Mentoring
Town Administration & Administration (TA)
� Matters relating to Land & State
� Civil Maintenance
� Electrical Maintenance
� Water Supply
� Roads and Drain Maintenance
� Horticulture and Afforestation
� Peripheral Development and
� Public Health in Township (Ukkunagaram)
� Interact with District Authorities for various welfare activities, land acquisition matters etc.
Medical & Health Services (M & HS)
The Medical & Health Services Division of RINL consist of Visakha Steel General Hospital (VSGH) &
Peripheral Units viz. Pedagantrya Health Centre (PGHC), Health Centre – II, Occupational Health
Services & Research Centre (OHSRC), Emergency Unit – I & II and Hospitals in Mines –
Jaggayyapeta Limestone Mines and Madharam Mines. The special features of Visakha Steel General
Hospital are:
� Full fledged Modern American Designed ICU and MBU capable of treating 6 patients at a
time
� Full fledged Modern Radiology with Central A/c systems
� Well equipped Path. Lab with Blood bank facility
� Cluster type Wards & Casualty with Central Nursing Station
� Modern Operation Theatre comples with Shadowless cold lights and 100% bacterial free
A/c system
Directorate of Commercial
Marketing Department
VSP has 23 no of Branch Sales Offices all over India and five Regional Offices viz. North Delhi,
South - Chennai, West - Mumbai, East - Kolkata and Andhra - Visakhapatnam. Main Activities of the
Marketing are as follows :
• Collecting Market feedback and Customers requirements for the preparation of Annual
Sales Plan in coordination with Works Department, for the sale of Pig Iron, Steel and
Byproducts.
• Prepration of Marketing Policies.
• Finalisation of MOUs, Spot sale agreements etc, in Domestic and Export Markets.
• Preparation of Monthly Rolling Plans in coordination with Works Department for meeting
the sale commitments.
• Processing of Materials like straightening of coils, cutting, bending, bundling, packaging
etc. at the plant premises and in the branches to meet customers requirements.
• Dispatch of products to various stockyards by road or rail or to customers from the plant on
direct dispatch basis.
• Operation of the contracts for transportation of products by road and stockyard handling/
consignment agency contracts for domestic sales, stevedoring contracts and third party
inspection agency for exports.
• Sale of products at branches, Headquarters and on direct dispatch basis to the customers in
domestic markets and on Ex-works and fob Visakhapatnam basis in exports subject to
tying up of commercial and financial terms and conditions. Ensure documentation as per
the procedures and as per the statutory requirements.
• Rendering after sales services, obtaining customer feedback and Customer Relations
Management.
• The details/information on the following aspects of Marketing are available in
www.vizagsteel.com, Marketing Module.
a. Rolling Plan
b. Products
c. Prices
d. Exports
e. Network
f. Customer Relation
Further, five Consignment Sale Agencies are also functioning at
Jamshedpur, Raipur, Pondicherry, Jammu and Guwahati.
Materials Management Department (MM)
� Procurement of all materials such as Raw-materials, Spares and consumables required for
the entire Plant Operations.
� To enter into long term agreements for supply of major & minor raw-materials with
indigenous and imported suppliers.
� To affect economy in the cost of materials by Purchasing materials of the right quality, in
the right quantity at the right time from the right source at the right place.
� To arrange inspection of materials prior to handing over to Production Units to ensure
quality materials only are issued to Production Units.
� Storage of materials & issue the same to the Production Units as per their requirement.
� To develop and encourage ancillary industries so that the availability of the materials at
right time is ensured.
Directorate of Finance & Accounts
Finance & Accounts
� Corporate Treasury Functions - Arrangements for Long term & Short term Funds, Working
Capital, Submission of periodical reports to Banks as required, Strategies for Long term /
Short term investments.
� Accounting of all monetary transactions and preparation of Financial statement of the
company, statutory compliance of Taxation, Company Law & Provident Fund and getting
them audited as required under Companies Act / relevant Act.
� Maintaining records w.r.t. to the cost of products in line with the Cost Accounting Records
& Rules Prescribed.
� Release of payments to suppliers / providers of goods and services.
� Release of salaries & allowances to the employees of the company.
� According concurrence / consultation to the proposals for investments & expenditure as
per the extant policies, procedures and the Delegation of Powers.
� Organising for payment of Central Excise, Sales Tax, Income Tax & other statutory
payments as per the provisions of the respective acts.
� Internal Audit (including ERM audit), Stock Verification as per the requirement of the
company.
� Ensuring timely Statutory Audit and Govt. Audit for the Company’s accounts and attending
to proprietary audit points by Govt. Audit.
� Generation of various MIS reports relating to Finance function of the Company for enabling
Management to take timely decision.
Corporate Strategic Management (CSM)
CSM is a “think tank” of the organisation. The Deparment is engaged in formulation of VMO
(Vision, Mission & Objectives) of the organisation and developing the strategy to achieve VMO. It
has various wings which inter-alia includes Knowledge Management Cell (KM Cell). It has also
developed the Corporate Plan of RINL. It takes up strategic tasks of the organisation.
Directorate of Projects
Design & Engineering Department (D & E)
� Liaisoning with Consultants and Government Authorities in connection with designs,
specifications, approval of drawings and liaisoning work for various types of clearances.
� Preparation of drawings, design and specification for AMR and Non-AMR jobs.
� Assisting indenting departments in technical discussion with parties and preparation of
technical recommendation.
� Layout clearances of various facilities coming in the Plant and Township.
� Operation of Consultancy contracts.
Construction Department
� Exercising supervision of work at site both for quality and quantity checks.
� Preparation of contractors bills, processing of extra items and closure of contracts.
� Liaisoning with suppliers, MM department, Design & Engineering Department and Stores in
connection with progress of work at site.
� Arranging PAT/FAT will all concerned departments like works, design, consultants and
suppliers in terms of contract and handing over the unit to works department for operation.
Contracts Department
� Awarding of contract from the point on receipt of administrative approval from indenting
departments.
� Conducting commercial discussions with parties.
� Arranging Tender Committee meetings and preparing recommendations for awarding work.
� Preparing COM/Board Note for decisions at those form.
� Participating in claims and arbitration proceedings.
Project Monitoring Department
� To monitor the physical and financial progress of all the works executed by Construction
department.
� To monitor the progress of works executed by D&E as well as Contracts department.
� Preparation of various types of reports for information of Government and different levels
of Management.
� Interaction with departments and consultant for updating the schedules and networks for
Project Monitoring.
Vigilance Department
Vigilance Department of RINL, set up in accordance with the Central Vigilance Commission (CVC)
Act 2003, is headed by the Chief Vigilance officer (CVO). The CVO acts as a link between the
organization and the CVC.
Functions of the department can be broadly divided into three areas, viz. (i) Pro-active /
Preventive vigilance; (ii) Punitive vigilance; and (iii) Collecting intelligence about the corrupt
practices / acts committed or likely to be committed in the organization through Surveillance and
Detection.
At micro level, the Activities of vigilance Department include inter-alia timely investigation and
disposal of complaints, monitoring and advising the Disciplinary Authorities for timely disposal of
disciplinary cases initiated based on vigilance cases, putting up to the authorities concerned
periodic reports in the prescribed timeframe, coordinating with the CVC, Administrative Ministry
and the CBI for effective vigilance administration, implementation of anticorruption initiatives
through awareness drives etc.
ACHIEVEMENTS & AWARDS
The efforts of VSP have been recognized at various forums. Some of the major awards received by
VSP are in the area of energy conservation, environment protection, safety, quality, Circles,
Rajbhasha, MOU, sports and a number of awards at the individual level.
Some of the important awards received by VSP are
� ISO 9001:2000 Certificate for
1. Production of comprehensive range of Iron and Steel products, Coke & coal
chemicals, other saleable products like liquid nitrogen, liquid oxygen, liquid argon,
ammonium sulphate and generation of power along with supporting & service
departments.
2. Marketing of Iron and Steel products in export and domestic markets through a
network of regional offices and branch offices.
3. Sale of power to state grid and sale of Coke & coal chemicals, other saleable
products like liquid nitrogen, liquid oxygen, liquid argon, ammonium sulphate in
domestic markets.
� Indira Priyadarshini Vriksha Mitra Award - 1992-93 Nehru Memorial National Award for
Pollution Control 1992-93 & 1993-94
� EEPC Export Excellence Award - 1994-95
� CII (Southern Region) Energy Conservation Award - 1995-96
� Golden Peacock (1st Prize) "National Quality Award - 96" 11M in the National Quality
Competition - 1996
� Steel Minister’s Trophy for "Best Safety Performance" – 1996
� Selected for "World Quality Commitment Award - I997" of J* Ban , Spain
� Gold Star Award for Excellent Performance in Productivity Udyog Excellence Gold Medal
Award for Excellence in Steel Industry. Excellence Award for outstanding performance in
Productivity Management, Quality & Innovation.
� Ispat Suraksha Puraskar (1st Prize) for longest Accident Free Period 1991-94
� Best Labour Management Award from the Govt. of AP
� SCOPE Award for Best Turnaround - 2001
� Environment Excellence Award from Greentech Foundation for Energy conservation – 2002
� Best Enterprise Award from SCOPE, WIPS - 2001-02
� Best Enterprise Award from SCOPE for surpassing MOU targets-2003-04
� ISTD Award for "Best HR Practices" - 2002
� Prime Ministers Trophy for "Best Integrated Steel Plant - 2002-03
� "World Quality Commitment International Star Award" in the Gold category conferred by
Business Initiative Directions, Paris
� "Organizational Excellence Award" for 2003-04 conferred by INSSAN
� National Energy Conservation Award, 2004 and Special Prize from Ministry of Power, Govt. of India.
The above awards are besides a number of awards at the local, regional & national level competitions in the area of Quality Circles, Suggestion Schemes etc.
For further information, please visit our website http://www.vizagsteel.com/